Sustained Economic Growth in the Long Run Would Be Fostered

question 39

Multiple Choice

Sustained economic growth in the long run would be fostered by

• A)expansionary fiscal policy.
• B)expansionary monetary policy.
• C)elimination of an output gap.
• D)decreasing excise taxes on consumer goods.
• E)technological improvements embodied in physical or human capital.

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Definitions:

Capital Structure

The mix of various forms of external funds and equity that a company uses to finance its activities.

Working Capital

The difference between a company's current assets and current liabilities, representing its short-term liquidity and operational efficiency.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing operations, and communicating with the board of directors.

Treasurer

An executive role in a company or organization, responsible for managing the institution's treasury and overseeing its financial and investment strategies.